What Does a Digital Marketing Agency Do & How It Works (Explained)

Digital Marketing Posted On: Jun 17, 2019

what does a digital marketing agency do & how It works

Admit it. When searching for marketing strategies online for your business, you may have stumbled upon the term ‘digital marketing agency’ multiple times and asked: “What do these agencies do anyway?”

We know what you’re thinking.

Marketing agencies have been around since the golden age of advertising and have evolved through a series of transformations since the advent of digital media.

This has changed their approach to marketing in a big way.

If you are already curious to know more about digital marketing agencies then read along.  They can add tremendous value to your business and make it more successful online.

Let’s first understand what they are all about.


A digital marketing agency is a dedicated company that specializes in providing internet marketing solutions for companies and startups to help them achieve their business goals.

They are different than traditional marketing or advertising agencies and use digital tools with result-oriented strategies to achieve their targets.

These internet marketing agencies come in all sorts of different shapes and sizes. Each agency offers a unique set of services to big and small businesses based on their specializations, team size, methodologies, and agency culture.


different types of advertising agencies

There are different types of advertising agencies that exist today.

From the classic Mad Men-inspired traditional marketing agencies to modern internet marketing companies of today, there is one to suit every bit of your requirements.

Check out some of the popular ones below:


Traditional marketing agencies are the ones that use traditional mediums like TV, radio, and print media to market their client’s products and services.

Prominent back in the old days, traditional agencies dominated the TV and radio advertising channels before the advent of the internet.

Most of these agencies today have made a shift to digital but are best suited for creative advertisements for TV ads, billboards, print ad campaigns, and radio jingles.


Branding or creative agencies are specialized agencies that offer a certain set of services rather than a whole range of services. For this reason, they are also often called boutique agencies.

Their core expertise lies in services like branding, graphic design, logo design, brand identity design, and other creative aspects of advertising.


As opposed to boutique agencies, full-service marketing agencies offer an extensive range of services.

Be it traditional marketing or digital marketing, their list of services includes everything from media planning/buying, copywriting, product design, package design, and print advertising as well as other type of internet marketing solutions.

These agencies usually have large teams and resources but at the same time are more expensive than other types of agencies.


Public Relations or PR Agencies are distinct agencies that help promote companies through editorial coverage as opposed to direct paid advertising done by marketing agencies.

They help build awareness for brands through articles, press releases, media events, etc.

PR agencies are ideal for companies who want to enhance or protect their reputation through media rather than advertising.


A digital marketing agency (commonly known as internet advertising agency) is a new breed of advertising agency that specializes in online marketing.

Digital ad agencies offer a wide variety of internet marketing solutions like search engine marketing, social media marketing, PPC advertising, content marketing, and digital branding.

Some even offer a mix of traditional, branding, and creative marketing services which includes print ads, TVCs, packaging, UI/UX design, etc.

They are also the most rapidly growing and most popular type of agencies around. They have a high demand due to their varied offerings of services across multiple online channels and mediums.


Social media agencies are a type of digital marketing agencies that specialize in providing only social media marketing services like Facebook ad campaigns, Instagram marketing, LinkedIn marketing, Social Media Strategy, etc.

Their list of digital marketing services includes everything from creating social media campaigns for businesses, to running paid ads, and even managing their presence and reputation on social media.

They are ideal if your goal is to generate buzz on social media channels or build engagement with your customers on social media.


Great! Now that you know the different types of advertising agencies it’s time to understand what they (specifically digital marketing agencies) do.

  • They give direction to your business
 give direction to your business

The core job of any digital or internet advertising agency is to lay the foundation of your marketing goals and help strengthen that foundation through online execution and testing.

A digital marketing agency helps you evaluate your company’s needs and develop an in-depth strategy to achieve a higher ROI.

They help you define your target audience which gives you an idea about your customer’s likes, interests, desires, age, location, etc. This data lets you target your exact customers and helps understand their needs better.

  • They establish your business online
They establish your business online

As online creators and professional web marketers, digital marketing firms work closely with you to create and establish your business online.

This is done in multiple ways starting with your website. Digital agencies have in-house UI/UX designers and web developers that create beautiful and professional websites to showcase your business online.

From there, digital agencies pick several channels and digital platforms for your business that are suitable to reach your audience.

  • They position your company as a brand
position your company as a brand

One thing digital agencies are adept at is branding.

They are aware of top industry trends when it comes to branding and promote your business as an established brand in your industry. This is done by creating a unique logo, brand guidelines, typography, packaging, etc. for your business.

An experienced digital agency also helps position your business as a thought leader using content marketing strategies. This helps attract your customers, provide them value, and generate sales.

  • They grow your business
grow your business

Digital agencies have a plethora of marketing strategies to enhance the growth of your business.

Whether your business is large or small, they use different organic and paid digital marketing strategies to increase your website’s authority, rankings, and value on the web.

Using a mix of social media ads, search engine optimization, and ppc campaigns they fuel the growth of your business giving you a boost in engagement and revenue.

  • They protect and nurture your online reputation
protect and nurture your online reputation

One crucial thing businesses overlook is managing their company’s online reputation. Online reputation, if not maintained, negatively impacts brand image, and worse of all, sales.

The great thing here is, digital agencies themselves take care of your company’s online reputation so you don’t have to.

They offer online reputation management services which includes everything from handling comments on your company’s social media profiles, to engaging with customers on forums, and managing other platforms your company is present on.


You may have been in a dilemma whether to do online marketing yourself for your company or hire an internet advertising company to do it for you.

Here’s the thing.

While it may look easy on the surface, doing all the legwork yourself can consume a lot of your time and money. On the contrary, hiring an internet advertising agency brings you a lot of benefits. Check out a few below:


Unlike freelancers, when you hire an agency you don’t hire a single marketer, web developer, or a writer you hire a whole team of experts.

This saves you from the worry of resolving any problem yourself and helps you get the job done in a professional way.


Comprehending creative ideas is a time consuming process and could eat up a lot of your time.

When hired, a good agency will help you brainstorm creative ideas together and offer you some great insights on which would work and which wouldn’t.

As experts, they can help you in every phase of your buyer’s journey and generate unique strategies.


When you’re all on your own you are exposed to the risk of overspending your budget without getting expected results.

That’s not the case when you team up with a digital agency.

With careful planning, the right tools, and targeted marketing efforts a digital agency helps you manage your advertising spends and brings more returns on your investments.


For every company, successful results is what matters the most. After all, who would like to invest in something that brings no results? With that being said, tracking successful metrics and identifying real ROI can get tricky in digital marketing.

This is where digital marketing agencies come in handy. They help you determine KPIs or Key Performance Indicators to let you determine which campaigns are performing according to your objectives. They send weekly, monthly, or quarterly reports so know exactly which part of your campaign was successful and which needs improvements.


To sum it all up, digital marketing agencies do much more than market your business.

With a skilled team of professionals, extensive marketing experience, and the right tools a digital agency can glorify your business in the online world.

If you are frustrated with unsatisfactory results and want some professional help to market your business online, we can lend you a hand with our digital marketing solutions.

We are an internet advertising agency with a strong blend of creative and technical teams that can help you boost your company’s growth. Whether you need a creative or more specialized digital marketing agency for your big or small business, we offer the best of both worlds.

Get in touch with us and we’ll take it from there.

6 thoughts on “What Does a Digital Marketing Agency Do & How It Works (Explained)

  1. I just came across your blog, and gotta say, that’s some to-the-point analysis of the digital marketing agency. Should I hire a freelancer or a digital marketing agency for the content writing activities for my business?

    1. Hi Brandon. Hiring a digital marketing agency or a freelancer completely depends on your work needs. If you’re looking for specialized content like blogs, articles, social media content, etc. You can opt for a freelancer.

      However, a freelancer’s work will be limited to writing quality content itself. They can’t help you with content planning, scheduling, keywords, analysis, and other crucial factors that can make your content more appealing and result oriented.

      Digital marketing agency, on the other hand, has a team of expert content analysts, content writers, SEO, and social media experts that can take care of every single aspect of making your content more impactful.

      Also, a freelancer usually charges as per the project needs and word count, which might cost you a lot for long term projects. Digital marketing agencies are ideal for long-term projects as they provide a cost-effective marketing solution with customized content marketing for your business.

      Hope this has given you a clear idea.

  2. Nice blog mate. I especially liked the part where you mentioned the importance of reputation management for companies. I really love it when companies (or their agencies) find creative ways to make viral Twitter posts and YouTube videos that skyrocket the brand image of companies.

  3. Nice introduction to digital marketing. You’re absolutely right digital marketing has many layers. Also the buyers journey is very important just as you said. I love your site. Nice job.

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